Introduction
In 2004, Pepper Construction had the experience modification rate (EMR) on the level of the bottom third of the group of their insurance company. Although Pepper Construction was better than the national average for general contractors, it was not good enough compared to insurance group members. The company needed to improve its safety performance. In order to do so, the company developed long-range strategic initiative, where safety became the first priority. The case describes different actions that were taken to improve safety culture and their impacts on the company.
Answers to the questions
1. How does the Pepper Construction’s “TEAM” mission help keep the company on
track toward better safety?
In general, an effective corporate mission statement defines the fundamental unique purpose of the company and identifies the scope of business’s operations in product and market terms (Pearce and David). Mission should be a constant reminder to its employees of why the company exists and what is the organizational identity (“Company Mission Statements”).
In order to draw attention to the importance of safety on workplace, senior management of Pepper Construction developed the TEAM safety mission to show that accident free environment is their first priority. Mission included points, such as training, ability to say “no” to unsafe conditions, necessary actions to protect employees and above all else motivation to maintain safety of company’s people. After writing the mission they took several steps to actually communicate this mission to the company’s employees at all levels, from construction workers to executives. First, mission statement was integrated to the annual safety seminars. To show that the company is serious about this topic, the director of Pepper Construction shook hand of every employee to demonstrate that each of them have the right and responsibility to work safely. Second, new safety training programs were developed. Third, mission statement became an important part of employee orientation on every job site. Also, to increase safety Pepper Construction is participating in Occupational Safety and Health Administration (OSHA) cooperative programs. Thus, through mission it was possible to express the organization's purpose in a way that inspired support and ongoing commitment (Taylor).
2. Why should Pepper Construction be concerned about the safety of its subcontractors?
Safety as one of the construction’s risks can seriously affect the work on the construction site. Subcontractor’s risk can significantly influence the overall costs of the project, as a result of hazards to health, safety and work delays. If the contractor implements different safety measures, such as fall protection, hazard communication, respiratory protection and others, the costs for the insurance and hidden cost of accidents are much lower, which means the reduction of overall costs (Emmons). Thus, in order to avoid hazardous situations and increase of costs, the company should check that their subcontractors are following a good safety program.
Conclusion
After the meeting with insurance group, Pepper Construction identified the need to improve its safety performance. Senior management of the company developed the corporate mission, where the most important aspect was the safety of the workers. The company committed a number of actions to communicate the mission to the employees. As a result of the restructuring of health and safety program, Pepper Construction detected considerable decrease in OSHA recordable injury and illness rates. Moreover, the company safety culture was improved, as employees started “looking after each other, watching out for hazards and eliminating them”.
Idea and recommendation about the case
The main idea of this case is to show how right formulation of a mission and right communication of this mission to the employees can help organization to achieve its goals. This case can be very helpful to senior management of different business areas as an example of successful creation and implementation of the mission of the company. It shows useful insights on how to resonate the corporate mission with the employees on different levels. Also, this case can be especially useful for construction companies that struggle with the same safety issues as was described in the case.
Bibliography
“Company Mission Statements.” N.p., n.d. Web.
Emmons, Jim. “Why Contractor Safety Is Important for an Owner.” Buildings. N.p., 2007. Web.
Pearce, John A, and Fred David. “Corporate Mission Statements: The Bottom Line.” The Academy of Management Executive 1.2 (1987): 109–115. Print.
Taylor, Nicole Fallon. “What Is a Mission Statement?” Business News Daily. N.p., 2015. Web.
